The subject invention relates to data processing systems for accounting for the costs of Transactions. More particularly, it relates to a data processing system for centrally handling the accounting and payment functions in the shipping industry.
FIG. 1 shows, in highly simplified form, a typical flow of goods, information, and funds between shippers and carriers. A Shipper 10, which includes a Shipping Department 12 and a Accounts Payable Department 14, delivers good with a Bill of Lading to a Carrier 20. Simultaneously, Shipping Department 12 transmits the Bill of Lading to Accounts Payable Department 14. From the information on the Bill of Lading, and possibly other Bills of Lading, Carrier 20 periodically determines the amounts it believes it is owed by Shipper 10 and submits a Freight Bill to Accounts Payable Department 14. Department 14 Audits the Freight Bills and, if considered correct, issues payment to Carrier 20. When it is considered that Shipper 10 and Carrier 20 each also deal with numerous other carriers and shippers respectively, the enormous complexity of the network defined by the transportation industry may easily be appreciated. Further, though not shown in FIG. 1, the need to Rate each shipment also greatly complicates the task of Carrier 20 and Accounts Payable Department 14. Rating involves the determination of the shipping costs for each item shipped as a function both of information about that item, such as weight, size, destination, type of goods, applicable Discounts, etc., and the rates of a particular carrier. Rating is usually double checked, at least on a sampling basis, during the Audit function to avoid overpayment by the shipper. (Alternatively, the shipper may perform the original Rating, in which case the carrier will find it necessary to double check.)
Numerous attempts have been made to simplify the accounting and payment task depicted in FIG. 1. A non-profit organization known as "The Transportation Data Coordinating Committee" (TDCC) has developed and promulgated a standard for the electronic exchange of information among shippers, carriers and other members of the transportation industry. This standard is essentially a set of electronic "forms" which members of the industry may use for electronic communication. While clearly a great step forward, the standard by itself does no more than replace paper forms with copper wires and does nothing to reduce the inherent complexity of the network shown in FIG. 1 or the difficulty of the tasks performed by carriers and shippers in accounting and paying for transportation. A corporation doing business as Trans Payment, Inc. provides a central switch or protocol converter, to facilitate use of the TDCC standard. While again perhaps representing a step forward such a switch does not reduce the complexity of the network of FIG. 1 or of the tasks of the carriers and shippers.
Freight agents and forwarders who arrange and schedule shipments for shippers are known. Such agents and forwarders also receive freight bills from carriers and pass them on to shippers.
A company doing business as Numerex, Inc. provides a third party service for auditing freight bills. Essentially, Numerex provides a third party Accounts Payable Department. Such third party Accounts Payable services have also been provided by banks. Numerex is also believed to provide a computerized third party Rating service.
Those skilled in the art will readily recognize that none of the services provided by any of the above-described organizations operates to change the essential nature of the network described in FIG. 1. Accordingly, it is an object of the subject invention to provide a system which will simplify the flow of information and payments between shippers and carriers.
It is a further object of the subject invention to provide a system which will reduce or eliminate the need for duplication of effort in Rating of shipments.
It is still a further object of the subject invention to provide a system which may be operated by a third party not involved in providing the goods and/or services which are the subject of the Shipment or other Transaction.
It is still another object of the subject invention which will allow shippers (buyers) and carriers (sellers) to control the "float" (i.e., funds left on deposit to cover future expenditures) in payments due by agreement.
Other objects and advantages of the subject invention will be apparent to those skilled in the art from consideration of the attached drawings and the detailed description set forth below.